KDOT secretary Mike King: Back personal taxes of $250,000 paid after lien filed

In the wake of a federal tax lien filed against him, a top state official said Monday he has paid in full personal income taxes of more than $250,000.

“I just mailed it,” Kansas Department of Transportation Secretary Mike King said.

He said he wrote the check Monday to the IRS for $251,187.77, which was the amount cited by the Internal Revenue Service on the lien it filed a month ago.

The amount was the balance of personal income tax that he and his wife owed from the sale of his construction company in 2012, when he was named KDOT secretary by Gov. Sam Brownback. The original amount of taxes owed from the sale was “north of $400,000,” King said.

“I was making the payments and all of a sudden I get this (lien),” King said, “and it surprised me.”

He said he didn’t know why the IRS filed the lien. An IRS spokesman said the agency couldn’t comment on specific cases.

King, a Hesston native, said the large tax bill was the result of selling King Enterprises Group, a family construction business based in central Kansas that he owned for more than 20 years.

“It was a complex transaction,” he said. “When you deal with construction companies and projects that run multiple years and trying to figure things out, it did get complex.

“But payment has been made in full now. Hopefully, you can see past making this too big, which it isn’t.”

The Eagle began inquiring about the IRS action Monday after obtaining an IRS lien notice from the Shawnee County’s register of deeds office. The lien was signed by the IRS on Aug. 21 and recorded by the county office Sept. 2.

The register of deeds was notified of the lien because the Kings own a home in Shawnee County valued at $289,840, according to county records.

The lien is for personal income taxes owed during the tax period ending Dec. 31, 2012, the lien document showed.

In the lien notice, the IRS stated, “We have made a demand for payment of this liability, but it remains unpaid.”

The lien is for “all property and rights to property belonging to this taxpayer for the amount of these taxes, and additional penalties, interests, and costs that may accrue,” the notice said.

People owing the IRS taxes are sent several notices before a lien is filed, according to the agency’s collection process.. Additional action would have to be taken by the IRS before property is actually seized, the website said.

King’s 2013 salary was $110,000, according to a KDOT spokeswoman. In July 2013, his duties were expanded to include director of the Kansas Turnpike Authority after a reorganization of the state’s toll road.

In August, King was elected to a one-year term as president of the Mid America Association of State Transportation Officials, a group representing 10 states.

This story was originally published September 22, 2014 at 4:09 PM with the headline "KDOT secretary Mike King: Back personal taxes of $250,000 paid after lien filed."